Gov. Corbett's proposed budget includes more money for education through sell-off of state liquor stores

HARRISBURG – Gov. Tom Corbett delivered his 2013 budget address before a joint session of the General Assembly Tuesday morning, revealing proposals for big changes to some of the state’s longest-standing and deepest-rooted policies, systems and procedures.

The $28.4 billion budget holds to the governor’s campaign promise of no new taxes, but funnels more money into public education, health and welfare services and transportation, including repairs to some of the state’s more decrepit roads and bridges.

Corbett spoke for a little more than an hour before members of the House and Senate.

Amid the more controversial proposals, the governor hopes to convince the Legislature to accept an overhaul of the state employee pension system and the privatization of all liquor sales, which are currently controlled by the state.

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“We are now at a turning point, because we are regaining our financial footing,” Corbett said. “We now have within our grasp to create more jobs, the opportunity to make every young person’s job search a local one. Great challenges must be met if we are to continue strengthening our commonwealth and fulfill the promise of a greater future for all Pennsylvanians. Now is not the time to cling to old ideas and the status quo.”

Last year’s budget introduced deep cuts to public education, but Corbett said he would restore some funding for early and higher education, and he had reassurances from state university leaders they would keep tuition low for students, he said.

A $1 billion “Passport for Learning” block grant would come from privatization of liquor sales and go towards enriching the state’s public school systems over the next four years to fund early education, science and school safety, Corbett said.

“When it comes to children, we should spare no effort. For the past two years, we have spent more Pennsylvania tax dollars for basic education than any time in our history,” he said.

The governor called for a $90 million increase for basic education funding, including another $6.4 million to Pennsylvania Pre-K Counts and Head Start supplemental assistance programs.

He also proposed a controversial change to the state pension system, which would require a reduction in benefits for all current employees and a 401K-type retirement plan for new hires.

“We’re proposing no cuts to any retiree benefits,” Corbett said. “They earned their retirement. They earned their guaranteed security, nor will I allow any pension dollars already earned by any current employee to be diminished in any way. Through meaningful pension reform, this budget will provide another $140 million in pension savings for school districts across the state.”

Corbett argued that privatizing liquor sales would double the number of jobs in the liquor retailing sector.

“I can think of no better use of the proceeds of getting us out of a business we should have never been in in the first place,” he said, garnering applause from members of the House Republican caucus.

“That’s why I proposed we get the commonwealth out of the liquor business and put the money towards education. Selling liquor is not a core function of government. Education is. We need to put liquor sales in private hands.”

While Pennsylvania remains one of the last in the nation to own state stores, the notion of handing over the job to the private sector was still met with criticism from local Democrats.

“Privatization of the state stores is a complicated issue, and we’ve been talking about it for the last 18 months,” said state Rep. Tim Briggs (D-149th Dist.), who admitted the public wants some type of reform in the way it purchases wine, beer and spirits. “A lot of people are interested in convenience and selection, but the concern is that it’s 5,000 jobs that get benefits and health care and pensions. Those comments being made about opportunities for those employees to keep their jobs elsewhere in state government — I’m hesitant to take their word for it.”

State Rep. Mike Vereb (R-150th Dist.) commended the governor for proposing to hire 290 more state cadets and 90 civilian police dispatchers, an area where he said the state is already spread thin.

“People down in our area need to know 80 state troopers currently police the City of Philadelphia,” Vereb said. “(Corbett) still focuses on a no-tax increase budget. He’s focused on transportation. He’s taken the pension crisis head on. These are not easy lifts and not anything the public should take for granted.”